Centre Boosts FPO Growth With New Credit And Market Support

08 Dec 2025 CW Team

FPOs receive support to obtain input licences for seed, fertiliser and pesticide supplies, as well as mandi licences for marketing their produce. To improve value-chain integration, weekly webinars are being held for FPOs, alongside initiatives for credit linkage and e-commerce enablement.

As at 31 October 2025, 4,642 FPOs are connected to the National Agriculture Market (e-NAM) platform. Credit-linked subsidy has been approved for 236 FPOs under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme, while 1,590 FPOs have benefited from the Agriculture Infrastructure Fund (AIF). Under PM-KISAN, benefits continue to be provided to individual eligible farmers rather than FPOs.

To strengthen access to finance, FPOs are encouraged to seek collateral-free credit through the Credit Guarantee Fund (CGF) of the 10,000 FPO Scheme, under which 2,583 FPOs have received guarantee cover. Additional efforts are underway to give FPOs wider exposure across digital and institutional marketplaces, including the Open Network for Digital Commerce (ONDC), e-NAM and the Government e-Marketplace (GeM), helping them reach larger markets and secure better prices.

FPOs are further linked with industry and agri-business organisations through melas, exhibitions and B2B events designed to improve bargaining power and market access. They are also supported in participating in expos held by industry bodies, central ministries and state governments. Webinars organised by the Ministry bring in industry experts to guide FPOs on commercial engagement and business development.

This information was provided by the Minister of State for Agriculture and Farmers’ Welfare, Shri Ramnath Thakur, in a written reply in the Rajya Sabha.

The Government is implementing the Central Sector Scheme on the formation and promotion of 10,000 Farmer Producer Organisations (FPOs), under which all 10,000 FPOs have now been registered. The scheme provides Rs 1.8 million per FPO for three years as management support, a matching equity grant of up to Rs 1.5 million, and a credit guarantee of up to Rs 0.02 billion through eligible lending institutions. It also offers assistance for training, market linkages and alignment with other schemes. FPOs receive support to obtain input licences for seed, fertiliser and pesticide supplies, as well as mandi licences for marketing their produce. To improve value-chain integration, weekly webinars are being held for FPOs, alongside initiatives for credit linkage and e-commerce enablement. As at 31 October 2025, 4,642 FPOs are connected to the National Agriculture Market (e-NAM) platform. Credit-linked subsidy has been approved for 236 FPOs under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme, while 1,590 FPOs have benefited from the Agriculture Infrastructure Fund (AIF). Under PM-KISAN, benefits continue to be provided to individual eligible farmers rather than FPOs. To strengthen access to finance, FPOs are encouraged to seek collateral-free credit through the Credit Guarantee Fund (CGF) of the 10,000 FPO Scheme, under which 2,583 FPOs have received guarantee cover. Additional efforts are underway to give FPOs wider exposure across digital and institutional marketplaces, including the Open Network for Digital Commerce (ONDC), e-NAM and the Government e-Marketplace (GeM), helping them reach larger markets and secure better prices. FPOs are further linked with industry and agri-business organisations through melas, exhibitions and B2B events designed to improve bargaining power and market access. They are also supported in participating in expos held by industry bodies, central ministries and state governments. Webinars organised by the Ministry bring in industry experts to guide FPOs on commercial engagement and business development. This information was provided by the Minister of State for Agriculture and Farmers’ Welfare, Shri Ramnath Thakur, in a written reply in the Rajya Sabha.

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